Analysts weigh Verizon against AT&T as Verizon's Q3 report approaches

Growth and profitability side-by-side

An Oct. 6, 2026 comparison of the two largest U.S. wireless carriers reported that, in the most recent quarter, AT&T grew revenue 2.30% while Verizon's revenue shrank 0.70%. Earnings moved in the same direction: AT&T's earnings grew 2.80% and Verizon's fell 23.30%. AT&T also held a profitability edge, keeping 16.94% of revenue as net profit against 11.64% at Verizon, and earning 18.34% on equity against 15.84%. Verizon's scale advantage remained, with $138.89 billion of revenue against $127.24 billion at AT&T, and an operating margin of 23.00% that sat close to AT&T's 24.79%.

Debt and the dividend question

The same analysis framed the carriers' dividend stories against their balance sheets. Verizon carried $193.65 billion of debt against $1.8 billion of cash, with debt-to-equity of 184.08%, while AT&T carried $165.76 billion of debt against $17.57 billion of cash and a debt-to-equity ratio of 129.05%. Verizon's enterprise value of $379.99 billion against a $193.28 billion market value meant roughly half of an acquirer's price would represent inherited debt. On cash flow, Verizon produced $17.47 billion of levered free cash flow against $10.14 billion at AT&T, supporting a 6.16% dividend yield that the piece described as the market's judgment rather than a bargain on a shrinking revenue line, compared with AT&T's 4.57% yield.

Valuation readings

The comparison also showed the two stocks trading at different points on earnings multiples. AT&T closed at $24.30 on Oct. 2, down 6.07% over twelve months, while Verizon closed the same day at $45.92, up 10.81%. AT&T was cheaper on trailing earnings at 8.35 times against 12.11 times at Verizon, but Verizon was cheaper on forward estimates at 8.73 times against 9.90 times. A PEG ratio of 0.83 at Verizon against 1.54 at AT&T pointed the same way. The same piece ranked Verizon ninth in a published list of the 10 Best U.S. Stocks to Buy Under $50.

Earnings catalyst ahead

A separate Oct. 6, 2026 note focused on the upcoming earnings release and recent price action. It reported that Verizon's stock had been falling since the Federal Reserve raised interest rates the previous month and that the company was set to release third-quarter earnings in a few weeks. The note characterized Verizon as trading at a low forward earnings multiple and described expectations as already low, leaving room for a positive print and outlook to lift the shares.

Next milestone

Verizon is scheduled to report its third-quarter 2026 earnings on Oct. 26, which the Oct. 6 commentary identified as the next catalyst for the stock.